A Deeper Look at Forces Fragmenting Our World—and How to Respond
The rare confluence of geopolitical, economic, and technological forces now confronting the world may reverberate for generations.
Why the IMF is Updating its View on Capital Flows
In some circumstances, countries should have the option of pre-emptively curbing debt inflows to safeguard macroeconomic and financial stability.
Chart of the WeekEconomic Indicators Signal Diminished Growth Momentum at Start of Year
The economic recovery continues, though the pace of the recovery has slowed. Notably, our global forecast was lowered in January to a still-healthy 4.4 percent expansion this year.
Low Real Interest Rates Support Asset Prices, But Risks Are Rising
A large and sudden jump in real interest rates could lead to a further selloff in stocks.
Crypto Prices Move More in Sync With Stocks, Posing New Risks
There’s a growing interconnectedness between virtual assets and financial markets.
Emerging-Market Central Bank Asset Purchases Can Be Effective but Carry Risks
Asset purchases can be an effective tool, but it is critical to minimize risks to central bank independence and price stability.
Chart of the WeekGlobal Financial Safety Net—A Lifeline for an Uncertain World
When crises hit, such as a global health pandemic, countries have a number of financial resources—both internal and external—to draw on.
Chart of the WeekHow Stock Markets Respond to Social Unrest
Philip Barrett and Sophia Chen
What happens to stock markets when social unrest—such as mass protests and riots—occurs? Are investors scared-off by the disorder? Or are they buoyed by the prospect of positive, popular change in response to unrest? […]
Time is Ripe for Innovation in the World of Sovereign Debt Restructuring
By Peter Breuer and Charles Cohen
عربي, 中文, Español, Français, 日本語, Português, Русский
When corporations have too much debt and need to restructure it, creditors often end up exchanging bonds or loans for stocks. They trade the guaranteed payout of a fixed-income investment for an equity position whose return depends on the company’s future results. […]
Emerging and Frontier Markets: Policy Tools in Times of Financial Stress
By Dimitris Drakopoulos, Rohit Goel, Fabio Natalucci, and Evan Papageorgiou
عربي, 中文, Español, Français, 日本語, Русский
After the unprecedented hit to economic activity in emerging market economies from the COVID-19 pandemic, their economic output is projected to shrink by 3.3 percent in 2020. […]